Establishing a new remote worker grant fund and program to be administered by the economic development authority and making appropriations

This bill establishes a new remote worker grant fund (fund) and a new remote worker grant program (program) to be administered by the economic development authority (authority). The bill requires the authority to establish the fund for the purpose of providing grants exempt from state income tax to new remote workers (worker).106A(1)(o). The authority must use any moneys specifically appropriated for the program only for purposes of the program. Moneys remaining in the fund at the end of each fiscal year do not revert and remain in the fund. 5 million from the general fund of the state to the fund for the program. For each fiscal year during the period beginning July 1, 2021, and ending June 30, 2026, the authority is required to allocate $500,000 for the program. The bill defines a “worker” as an individual who is a full-time employee as defined by the individual’s employer, who performs the majority of the worker’s duties remotely from a home office or a coworking space located in this state, and who is a resident of this state. “Resident” is defined as a natural person who has physically resided in this state as the person’s principal and primary residence or domicile for a period of not less than consecutive days immediately before applying for a grant and who has been issued an Iowa driver’s license or an Iowa nonoperator’s identification card. Under the bill, a worker is eligible for a grant for qualifying remote worker expenses (expenses) in an amount not to exceed $5,000 per calendar year. “Expenses” is defined in the bill as actual, substantiated costs that a worker incurs for relocation to a community in this state with a population of 15,000 or less, computer software and hardware, broadband access or upgrade, and membership in a coworking space. The expenses must be necessary to perform the worker’s employment duties and cannot also be reimbursed by the employer. “Coworking space” is defined in the bill. A worker is eligible for a grant for a maximum of two calendar years. A worker that is awarded a grant under the program must remain employed full-time and must remain a resident of this state for a minimum of one calendar year after the date of receipt of the grant, or the grant is subject to recapture by the authority. The bill provides that the amount of any grant awarded under the program is deducted from the worker’s net income to the extent included for state income tax purposes. The bill requires the authority to adopt rules to implement and administer the bill. The bill also permits the authority to adopt emergency rules. The authority must submit a report to the general assembly and the governor’s office providing details related to the grants and grantees. The report is due by January of every year for the immediately preceding calendar year.